Shares of TBO Tek Ltd plunged over 5% on Monday, trading at ₹1,322 as of 9:32 AM, marking a sharp fall of ₹75.90 from the previous close. The decline comes despite the company reporting a strong 22% year-on-year increase in revenue for Q1 FY26.
The concern among investors appears to stem from the company’s flat profit growth. While operating revenue rose from ₹418 crore in Q1 FY25 to ₹511 crore in Q1 FY26, net profit edged up only 3% to ₹63 crore from ₹61 crore. This muted bottom-line performance disappointed the Street, triggering a sell-off in early trade.
The increase in total expenditure also weighed on profitability. TBO Tek’s overall costs surged 27% YoY to ₹456 crore, largely driven by service fees for hotel and package bookings (₹178 crore) and rising employee benefit expenses (₹103 crore).
Hotel and package bookings, which formed 83% of the company’s revenue, grew 32% YoY to ₹423 crore. Despite strong operational metrics, the limited profit growth has raised concerns over margin pressures, dampening investor sentiment.
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